Tag: exchange

Regarding Utility tokens

A digital token of cryptocurrency that is issued in order to fund development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer of the cryptocurrency. (A definition from Merriam Webster)
Native tokens are integral to a decentralized blockchain. These tokens are bought, distributed, vested and represent the value of the future product or service and are ultimately traded on exchanges. These circulating tokens provide liquidity and represent the overall interest in the project through the crypto market-cap and the value at which these get traded on an exchange.

The Network Effect

The token issuers need to differentiate themselves and find a way to attain network effect. They need to arouse interest in their project and vision so as to increase the token circulation and thus the value. Like a single telephone is of no use (because who would you call until there is a network of telephone users each having a telephone?), similarly, the utility tokens derive their value through circulation, and their utility on a particular platform, thus called a utility token.
The bigger the network grows, the more utility in the token, and because the number of tokens is fixed and usually pre-mined. As the size of the network and transaction volumes within it grows, this will create demand for the tokens.
In order to encourage people to buy, use, keep, trade tokens there can be rewards, bonuses, sales, lotteries and airdrops to adopt the business model and use the services regularly. However, companies who use their tokens for airdrops and giveaways often lose value due to pump-and-dump plays of traders. Users can also be encouraged to use the tokens for payment and enjoy discounts when compared to transactions that do not use platform’s utility tokens. Token holders can also be given more privileges on the platform to be able to vote, or for expedited customer service, preferential rates etc.

Security vs Utility Tokens

Utility tokens are differentiated in terms of security, but often, the boundary remains blurry. Utility tokens have a business use-case. They may grow in price, if the demand for service or product increases. So buying such tokens of a project, that solves real problems of users and is constantly being developed and improved, may give great profit in future. Usually the tokens from a promising project that are bought in an initial sale tend to grow multi-fold and return future profits. One such example is utility token called PROB that is native to Probit.com crypto currency exchange platform.
Securitytokens, on the other hand, give their holders ownership rights in the company. A security token’s value is derived from a trade-able asset. They are like the IPO equivalent of the blockchain based ICO and can be utilized for investing, profits and voting rights over the blockchain frameworks.
The 1st utility token with a strong adoption was certainly Ethereum with the revolution operated by the Smart Contracts.

The PROB token

PROB is a payment utility token at ProBit Exchange, by which the trading fee, listing fee, etc. can be paid. Furthermore, PROB provides a number of utilities within the probit.com exchange platform. It is an ERC-20 standard utility token and its main usage is to pay for fees on the ProBit Exchange. ProBit will issue 200,000,000 PROB and the circulation will never increase above that.

ProBit protects PROB holders by NEVER using PROB for marketing or airdrops.

ProBit has implemented a tiered membership system for users, Premium/Standard depending on PROB holding by users. Premium users will qualify for enhanced fee discounts and referral bonus, listing voting rights, and priority access to new features and trading products. The PROB native token comes with following benefits:

Trading fee discounts

Voting rights for listing of new tokens

Increased referral bonus

Early access to new features (dependent on PROB holding)

After the launch of ProBit Exchange, PROB will enter the Trade Mining period. During this period, for qualified transactions at ProBit, PROB worth 80% of the trading fee based on the market price of the PROB will be mined and issued to the trader as a reward.
Unlike other exchanges that implemented a mining model to their exchange token, ProBit’s utilization of trade mining is meant to encourage active trading on the platform while providing users benefits in being early participants in the platform.
PROB held by investors in the Private Sale and the team are subject to vesting periods. PROB held by users in the Pre-Sale, Main Sale and Trade Mining periods are not subject to lock up or vesting period.

The foreign exchange market is the place where currencies are traded. Currencies are essential to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business.
The forex market is the arcade in which applicants can buy, sell, exchange, and speculate on exchanges. The forex market is made up of banks, marketable companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors.
Our exchange will provide you forex trading with cryptocurrency exchange and trading platform so that traders will get everything at one place.

<Business Name Hidden> Exchange

Security

Following a wave of phishing, malware and cyber attacks on prominent exchanges, safety is the first thing on every traders mind and rightly so. At <Business Name Hidden>, we have the following measures in place to keep our users funds safe:

DDoS protection from Cloudflare

Password combined with 2-Factor Authentication for login and withdrawals

Combination of Multi Signature Wallets will be used to ensure that user funds remain safe and accessible

Audit of all smart contracts Security Audit and Penetration Testing by leading security consultants

Trading Platform

Our trading platform is robust enough for high frequency seasoned traders and simple enough for new traders. Some of the main features are:

Ability to register up to 1,000,000 transactions a second.

Limit, Market and Stop Loss orders.

Exportable Trade and Order History

Multi Sig wallets with 24/7 monitoring

Up to 10x leverage with Margin Trading

Features of <Business Name Hidden> Exchange

<Business Name Hidden> is Digital currency exchange, We Provide 0% trading fee for 6 month during at the time of exchange launching

A user who buy 1 lakh <Business Name Hidden> tokens will get 50% trading fee and that will be the permanent

How to make money with cryptocurrencies

With the advent of crypto-currencies, making money is the biggest craze now, even much more than before. Millennials are more infatuated with money and it definitely helps that we’ve been in a bull market. With the rise of social media, it is much more prevalent to show money off. Well cryptocurrencies are a great way to make money (or loose it if you jump without understanding them). 2017 saw a crazy influx in prices of different cryptocurrencies that no one could believe. We finally saw a nice correction so making money is clearly in sight. Making money in cryptocurrencies is not the easiest task as it is a very volatile market. You can wake up and see 30% of your gains disappear overnight. Volatility is a risk factory you have to take in before putting any money on the table.
Another thing to remember is that you want to make sure you never put more money into an investment you’re willing to lose. You want to take every investment with a grain of salt. With that said, always do your own research. Never speculate because that is a very easy way to lose your money. Always look at the different aspect and technical information.

Capital Gains

Capital gains in cryptocurrency are the best way to earn your money. Equity markets are based off of capital gains and having patience will help you in the long run. When you get emotional with your investment, you automatically lost. Treat investments how you do when they’re running up. Just how you don’t care about taking your money out then, don’t do it when it is going down. Taking profits is good but make sure you plan for it. Always know when you’re entering in a stock or crypto and when you’re exiting along with your profit taking. Becoming emotional can cause you to make impulse decisions which can lead to selling too early. In a bull market, everyone is a genius but in a bear market everyone panics. This is why they say panic sellers have weak hands because they can’t hold onto their
money.

Passive Income

When it comes to cryptocurrencies, passive income is still a viable option. Passive income can come in many ways but for Bitcoins, there are different ways to go about it. Mining and staking are the two most common ways to earn passive income. Mining is using specific hardware equipment to solve difficult mathematical equations. Not only do you unlock more coins this way but you are also helping confirm transactions on the blockchain. Staking is the act of keeping your coins in your digital wallet and keeping your wallet open on a device like a computer. There are other forms of income like getting airdrops or forked coins that you already held.

Day Trading

Day trading is the hardest way to go about investing your money. You have to sit in front of a computer while checking different analysis charts and you can still be wrong. You are also not making huge increments of money either. Training yourself to learn the stress of the market going up and down is hard. A story about a person investing at the peak of the market was published of how he only invested money at the peak of each cycle. Over the years, he had still made more money than someone trying to time the market.

Author Bio:

Alex M.
Alex has been very deep in the cryptocurrency space for the last 3 years soaking in everything there is to know. With such a new industry popping up, Alex is constantly sharing about the latest news and updates in cryptocurrencies on CoinPupil. To learn more about him and his work, read here.

The world is really moving fast. The time appears short each day. It was only yesterday that you were using dollars to pay credit-card bills etc, while today you have transactions going on using Bitcoins and investments in Utility tokens! Yesterday you just worried about the percentage inflation and the eroding future-value of that hard-earned dollar, and today you are buying Bitcoins to preserve and even enhance its value over-time! What is your frame-of-reference to measure that value? Usually, measuring how-much your Bitcoins are worth in USD today and tomorrow compared to when you bought them. (You probably transacted into crypto-currency multiple times and every time its value was “quite” different, isn’t it?). As if, tracking your credit-cards and (multiple?) bank accounts was not a pain in itself, now you have your foot in the crypto-currency world and every coin/ICO/token you buy into, is a completely new dimension in itself. How do you, then, go about tracking crypto currency?
Do you (like me) find it easier when things are specified in USD (or the base-currency you use in your country)? Calculating the difference between your buy price (USD per BTC) and how much it is worth today (USD per BTC) gets you quite comfortable and happy with that resultant in USD, isnt it?
How about Ethereum (ETH), which you probably bought using your accumulated BTCs (and not directly through USD). Did you have the urge to find how much (in USD) you are paying for that ETH? Even if you didn’t calculate it before buying, you certainly did see its dollar-worth afterwards. As the crypto-currency world was looking quite exciting (both risky and adventurous), you started exploring some ICOs too, or are you not there yet? ICOs are quite risky because there is (yet) no formal method one can use to arrive at a value of their token, and most of them can be intentional scams and some of them even without a worthy block-chain use-case. But after your initial-study and satisfaction, you did buy those tokens today using ETH. The same ETH that you had bought earlier using BTC at an crypto-exchange-rate you don’s seem to remember clearly.

What was your average buy-price into the crypto-world?

The tokens you bought as investment, would be valued at a different rate tomorrow (hopefully much higher) but wait a minute, which rate? Tokens per ETH, or, tokens per BTC, or, per USD? While the value of ETH as well as BTC fluctuates drastically every day, how do you find the worth of your tokens any fine day? Unless you make tokens/ETH/BTC as your base-currency itself, it is quite a brain-wreck.
Consider another case where you think that being on ETH vs BTC trading is going to be better than USD vs BTC trading. So, you want to trade based on the varying differential between ETH and BTC and cash-in on the arbitration. Would you calculate USD per ETH and ETH per BTC for your decision, or maybe AFTER the transaction to see how much you made on that one? How about a third token, let us say ATL (Atlant.io).
So evaluate:
Number # of ATL per ETH (get # ETH per BTC (get # USD per BTC)).
Every-time you are thinking about that, the rate is constantly changing, so you think “maybe” when the BTC is able to buy more ETH, you would be better off even getting those ATL (as compared to now). However, that is even more beneficial when you get more BTC with the same amount of USD.
It really starts messing up your mind. In the long term, the USD is itself affected by the inflation. That was the main reason you started moving from fiat money into crypto-currency. Today you have stopped basing the value of USD in gold. Gold remains a hedge but hardly a way to measure the value of your portfolio. So what value do you put to BTC? What is it that ETH is worth, and all those ATL tokens? It will be very different tomorrow! Maybe you will evaluate USD w.r.t. BTC one day, who knows?

Tracking Crypto Currency in Excel

I started putting the following sheet together to get some sanity in this madness. I don’t know what other methods you use (you can tell me about it) but the following started giving me some perspective, of “Where am I?”.
First of all, do the following for USD<->BTC transaction management. (This may very well be provided by your BTC wallet provider, but just be with me and you would start seeing the larger benefit)
Here is the column-wise description (Column B-D is FIAT money tracking while E-J is Bitcoin tracking)

Crypto-currency purchased (Auto-populated from money used and exchange rate)

Amount used for the crypto-transaction (Column F)

Balance of your crypto-currency in your wallet. (Auto)

Balance of your crypto but shown in you base currency. (Auto)

So, at any point of time you get a full-view of the growth of your portfolio, not just in absolute crypto-coins but also in the base-currency reference. You can readily find out at what levels you purchased some of the coins, historically/averaged, and their value today should you decide to sell them. Now, this was not too difficult (given your wallet already supports this transaction history). The best part starts now, when you have to use multiple wallets and web-services to get into alternate coins (Ethereum etc) and utility tokens (ATL etc) etc and each one has its own transaction history and its own wallet or mobile app.

But, if you are here with me till now, the excel is easy to extend further. Here we use the same sheet but add more columns for tracking crypto currency Bitcoin to Ethereum exchange.
And, here goes the simple description of the new columns

Etherum per Bitcoin exchange rate (or any-to-any crypto for that matter)
(For exmple, you can get it from here or your favorite exchange)

Now, you should start seeing the benefit of this single-sheet as a reference of your USD, BTC, ETH portfolio that you can use for tracking crypto currency investments and its current/historical value for decision making, without getting brain-wrecked in this madness.
Adding an ICO transaction now becomes even easier, as you have your base excel sheet properly set. So, now you decide to purchase a token using ETH (which was bought using BTC at some historical price). The following addition to your tracking crypto currency sheet, gives you immediate reflection of what the token is priced at the current ETH or BTC or USD level. Without further delay, here you have the next set of columns:

The actual cost of token in USD (Auto-derived from column ‘E’, ‘K’ and ‘Q’)

Numbers of tokens purchased (Auto-derived from column ‘N’ and ‘Q’)

Number of outgoing tokens (if any)

Balance utility tokens (Auto)

Balance of utility tokens but value specified in USD (Auto)

Cumulative portfolio value of all fiat/USD, crypto, alternate and tokens with you (Auto)

So, finally here is what it looks like for my crypto-portfolio, a place for everything and all things in one place:
The best-part of this sheet are the columns:

(J, P & V) for individual USD values of each crypto

Column W for value of full portfolio at any day.

Column (L & R) to check the cost for the token in base-currency terms (USD etc)

A summation of Column (B): The total money you put into crypto over-time (plus how it is spread/diversified) and compare with ‘W’ portfolio value.

It really helped many times to get an overall view, and one specific time when:
I purchased a few tokens using ETH (exchanged via BTC), and I was trying to check how much my balance had gone down due to the purchase. To my surprise the value was instead showing an increase! A quick look at this sheet really help consolidate and reconcile the fact that the amount used to purchase the tokens was less than the amount of increase that happened in the BTC during this time. It would have otherwise brought in a lot of confusion if I started looking at individual wallets, their balance and old transactions one by one.

Reference Excel Sheet for download

You can download the excel sheet from here for reference and to build more functionality on top of it. You can add graphs or other currencies that you have invested into. (Note: The numbers in the excel are just EXAMPLES that you can change to track your own portfolio)
Hope it helps and you can give me further suggestions…

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